Market Equilibrium Vocabulary

Front

the point at which the quantity of a product demanded by consumers in a market equals the quantity supplied by producers

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market equilibrium

Front

the price at which the quantity of a product demanded by consumers equals the quantity supplied by producers

Back

equilibrium price

Front

the quantity of a good or service demanded by consumers and supplied by producers when the market is in equilibrium

Back

equilibrium quantity

Front

when the quantity of a product demanded by consumers does not equal the quantity supplied

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disequilibrium

Front

a situation that exists when the quantity demanded of a product exceeds the quantity supplied

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excess demand, shortage

Front

a situation that exists when the quantity supplied of a product exceeds the quantity demanded

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excess supply, surplus

Front

government-imposed limits on the prices that producers may charge in the market

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price controls

Front

a minimum price set by the government to prevent prices from going too low

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price floor

Front

the lowest hourly rate, or wage, that employers can legally pay their employees; a price floor on wages

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minimum wage

Front

a maximum price set by the government to prevent prices from going too high

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price ceiling